From start-ups to large-scale corporations, every business has a reason to stay on top of its value. That takes a professional service balancing property knowledge, as well as financial and operational expertise. Licensed independent business valuers in Canberra sport that exact skillset.
A Certified Practising Valuer (CPV) is trained to develop business valuation reports that are accurate, objective and transparent. These are legally certified and designed to suit a range of official and legal obligations of the modern business owner.
Enterprises across the country call on licensed valuers to assist with strategic planning, calculating taxes, managing settlements and more. It’s a highly customisable, multipurpose service.
Business valuations are:
- reliant on professional knowledge of commercial and management accounting
- developed in accordance with proven and repeatable methods
- compliant with Federal Court Circuits, Australian Taxation Office (ATO), as well as Accounting Professional Ethical Standards
- comprised of extensive research and analysis
- intended to accurately calculate the fair market value of any organisation or property.
Only a qualified valuer with the requisite training is geared to thoroughly review your business’ performance and market standing. This involves a comprehensive review of operational finances, as well as the industry you operate in.
What is a business valuation report?
Business valuation reports are legally certified investigations performed by CPVs. They generally aim to establish either the current or retrospective market value of any enterprise or property.
Valuations can be conducted for the likes of:
- national or international chains
- small start-ups
- family-run establishments
- large-scale corporations.
These include organisations across every sector. CPVs can value restaurants, IT companies, law firms and many, many more. The process is intensive, but the qualifications and ongoing training of a licensed valuer are the perfect framework for keeping pacing with multiple changing industries.
There are numerous purposes for seeking out a valuation. These include:
- counsel on pre-purchase/pre-sale matters
- legal affairs including settlements, litigation, family law and deceased estate
- major corporate decision-making
- calculating a business’ tax obligations
- strategy, family, succession and exit planning.
CPVs come with unique professional insights into the financial world and the market at large.
Every report is a detailed exploration and review of your entity’s performance and operations. These reports dictate every step of the process, clearly illustrating the techniques and methodologies used throughout the valuation.
Transparency is a key point of the valuation philosophy. Unlike some professionals who guard their trade secrets, valuers ensure impartiality and accuracy by putting it all on the table.
How to do a business valuation report?
Business valuations are based on a series of comprehensive methods.
These methods are differentiated by the likes of:
- which areas of financial or operational performance are focused on
- the size of the entity they’re designed to suit
- the range of mathematical formulas applied through the valuation.
The three primary methods behind any business valuation are known as the capitalisation of future maintainable earnings, net asset and discounted cashflow methods.
The capitalisation of future maintainable earnings method:
- includes a comprehensive focus on historical financial statements
- applies a weighting method to estimate potential future earnings
- utilises industry-sourced multiples and taxation benchmarks
- is used for a wide range of purposes and business types.
On the other hand, the net asset method:
- involves reviewing tangible and intangible assets against financial liabilities
- is used for businesses not turning a profit or nearing closure.
Finally, the discounted cashflow method:
- analyses cash flow statements of the business’ projected earnings
- weighs the results against anticipated economic risk factors
- is generally reserved for valuating large-scale corporations.
All CPVs are qualified accountants with the skill set to perform the necessary financial analysis. In addition, any licensed business valuer is expected to work per the expectations set by the Accounting Professional Ethical Standards (APES).
How much is a business valuation report?
The pricing spectrum of any valuation is nearly as wide as the services available.
There is no definitive price for a valuation of any kind. Business valuations can be performed across every type and size of business, as well as for numerous purposes. These include a bevy of legal and official matters, supporting the sale or buying process or offering professional guidance on corporate decision-making.
As a result, the price of any business valuation is directly tied to the scale and complexity of both the valuation service and the organisation being valued.
Summary:
Valuation is the most accurate method to establish the value of any business enterprise. It’s a complex investigation involving exhaustive financial analysis, as well as industry and market research. Licensed valuers are trained to take on numerous valuation services across every size and type of business.
Business valuation reports are developed using a series of proven methods, designed to fit different circumstances. These are the capitalisation of future maintainable earnings, net asset and discounted cashflow methods.
Certified Practising Valuers have expert knowledge of commercial and management accounting, as well as forensic reporting. This makes them perfectly suited to assess an organisation’s financial performance and operations to establish its fair market value, whether current or retrospective.
Each valuation is conducted according to strict standards for integrity, accuracy and transparency. These reports are legally certified, admissible to the courts and designed to suit a range of legal and official matters that can only be achieved by working with a CPV.
For more on the business valuation process, reach out to our qualified valuers today.